Product 1 Margin Analysis 0 based on current prices and estimated future per-uni

Question

Product 1 Margin Analysis 0 based on current prices and estimated future per-unit product costs) Region 1, Channel 1 Region 1, Channel2 Region 2, Channel 1 Region 2, Channel 2 Region 3, Channel1 Region 1 U.S.A Region 2 Europe Region 3 Pacific Current Configuration H11101 $143.60/unit H11101 H11101 Estimated Future Product Costs $143.60unit $143.60/unit Channel 1 (Retail) Active Product? Manufacturer Price NoOYesNoOYesNoYe.o 310 310 Marketing Spending 30000 co0o 000 360000 Credit Financing (0% quarters) Channel 2 (Direct) Active Product? NoYesNoO Yes Manufacturer Price 445) Marketing Spending [36000 No Yes 445 360000 Credit Financing (0% quarters) Current total product 1 marketing spending is 1,800,000. Current total product 2 marketing spending is 1,440,000. Current total firm-wide marketing spending is 3,240,000; firm-wide marketing spending limit is 7,409,108 2

Explanation / Answer

Answer: Input for product 1 is:

1. Marketing spending: $1,800,000

2. Credit financing is $1-$3 per unit

Input for product 2 is:

1. Marketing spending $1,440,000

2. Credit financing: $1-$2 per unit

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